Amwell divests virtual psychiatric care business for $21M and added earn-out

Amwell (AMWL) announced it has sold its Amwell Psychiatric Care business to Avel eCare, a provider of clinician-to-clinician telehealth services. Avel eCare is purchasing the APC business for approximately $21M in cash at closing and an additional earn-out payment. The sale includes APC technology, personnel and Asana, the psychiatric clinical network affiliated with Amwell that employs and contracts with APC clinicians. “The divestment of APC will enable us to increase focus on our unified, world class digital care platform. The transaction strengthens our balance sheet while emphasizing our focus on growing accretive software contribution in our product mix,” said Ido Schoenberg, M.D., Amwell chairman and CEO. “We’re confident Avel eCare will be a wonderful home for our APC business and will continue to offer great value to clients. Their expertise in telehealth and shared commitment to innovation make them the ideal organization to carry forward this important work. We look forward to exploring collaborative ways for Amwell and Avel to serve patients and communities together. This transaction enables us to place an even greater focus on our mission of connecting and empowering providers, insurers and innovators to deliver more accessible, affordable and high-quality care,” said Schoenberg. “It also fortifies our confidence in our stated goal to achieve positive cash flow in 2026.”